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Australia is to raise scrutiny of foreign investors, the first example of a nation taking concrete steps towards controlling activities of sovereign wealth funds and state-owned companies.
The Australian government published six principles it said were intended to “enhance transparency of the country’s foreign investment screening regime”. Australia will in future consider whether “an investor’s operations are independent from the relevant foreign government”. Within that principle, the Foreign Investment Review Board will consider whether the prospective investors operate at arm’s length from the government, and its governance and funding arrangements.
Canberra’s move comes just weeks after a company owned by Aluminium Corporation of China and Alcoa of the US spent $14bn (€9.5bn) to buy 9% of Rio Tinto, which has rejected a hostile $147bn offer from rival BHP Billiton. (
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